Capital Cost Allowance - CCA

Capital cost allowance basically means that companies that purchase a long-term asset (like a building or a piece of equipment) can't deduct that jumbo cost all at once from their income taxes. Instead, they have to deduct it...slowly and painfully...over a certain number of years.

It's kind of like buying a $1000 cell phone and getting a hundred-dollar rebate on it…over ten years. Yeah, the government actually likes to torture us that way.